Pan Pacific Bank Announces Second Quarter Profits

FREMONT, Calif., July 19, 2012 /PRNewswire/ -- Pan Pacific Bank (OTCBB: PPFC.OB) announced unaudited financial results for the quarter ended June 30, 2012.  Total assets of $117.2, loans of $89.4, and deposits of $103.9 million, at June 30, 2012, each represent record levels for the Bank.  Chief Executive Officer Wayne Doiguchi commented, "Pan Pacific Bank is pleased to report $75 thousand in profits for the second quarter of 2012, bringing our total year to date 2012 profits to $423 thousand."

Subsequent to the second quarter, on July 9, 2012, the bank completed its capital campaign by closing a rights offering that was 100% subscribed plus 20% oversubscribed, with $1,200,000 in total subscriptions, representing 600,000 shares of new stock.  Total gross capital raised during the entire campaign, which included a private placement and the rights offering, was $6,612,825 or 3,306,413 shares.  

The Bank also announced that regulatory agencies have removed the consent order put in place in April 2010.  The order was replaced with a memorandum of understanding.  This informal agreement is less restrictive and primarily calls for the leverage capital ratio to be at least 10%, the total risk based capital ratio be at least 12%, and continued reduction of adversely classified assets.

"These accomplishments are the result of very hard work by our employees and furthers our efforts to build franchise value for our shareholders," stated Chief Executive Officer, Wayne Doiguchi. 

Net income for the six months ending June 30, 2012, was $423 thousand or $.10 per diluted share compared with a net loss of $(416) thousand, or $(.261) per diluted share for the six months ended June 30, 2011.  Net income for the quarter ended June 30, 2012, was $75 thousand or $.017 per diluted share compared with a net loss of $(261) thousand, or $(.164) per diluted share, for the quarter ended June 30, 2011.  Net income improved in the first six months of 2012 primarily due to an increase in net interest income of $402 thousand, an increase in non-interest income of $661 thousand driven by a $673 thousand gain on sale of loans, offset by an increase in non-interest expense of $342 thousand and provision for loan loss of $118 thousand, compared with the first six months of 2011.

Total assets increased $25.3 million, or 27.6%, to $117.2 million at June 30, 2012 compared with $91.9 million at June 30, 2011.  Net loans increased $13.7 million, or 18.6%, to $87.4 million at June 30, 2012, compared with $73.7 million at June 30, 2011.  Total deposits increased $20.5 million, or 24.6%, to $103.9 million at June 30, 2012, compared with $83.4 million at June 30, 2011.

Stockholders' equity increased $4.5 million, or 55.2%, to $12.8 million at June 30, 2012 compared with $8.2 million at June 30, 2011.  This increase was due primarily to the recent successful capital raise of $4.9 million and excludes the capital raised through the closing of the July rights offering.

Pan Pacific Bank

Pan Pacific Bank is focused on meeting the banking needs of business and individuals in Alameda and Santa Clara counties, that are its primary service areas.  The Bank was founded July 2005 and is located at 47065 Warm Springs Blvd, Fremont California.  The bank is a SBA / USDA lender and offers a variety of banking products to include loans, deposits, remote capture, and other cash management services.  For information concerning this press release please contact Wayne Doiguchi CEO or Dale McKinney CFO at 510 810 8888. Our web address is www.panpacificbank.com.

Forward-Looking Statements

This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement.  Forward-looking statements are subject to risks and uncertainties.  Such risks and uncertainties may include, but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in our primary service area and more generally in California and other factors beyond the Bank's control.  Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated.  Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof.  Pan Pacific Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

For information concerning this press release,
please contact Wayne Doiguchi CEO or
Dale McKinney CFO at 510 810 8888.

SOURCE Pan Pacific Bank